TORONTO (CP) -- Troubled airline Canada 3000
filed for protection from creditors
under federal bankruptcy laws Thursday after
failing to reach a deal with its unions that would
have cut hundreds of jobs and reduced operating
costs.
The battered carrier, which is losing about
$700,000 a day and has only a few days of cash
left, made the filing in a Toronto court under the
federal Companies' Creditors Arrangement Act.
The act -- used by troubled companies such as
Eatons, Algoma Steel, Dylex and others -- allows
the airline to restructure its debt, cut its workforce
and negotiate with creditors while it tries to come
up with a long-term survival plan.
In Ottawa, Transport Minister David Collenette
confirmed the filing for bankruptcy protection under
questioning in the Commons and said the airline's
future is now before the courts.
"On the assumption that the judge grants the
application, the matter is now being supervised
under statute and we have to let the process take
its course," the minister said.